Allegiant Air Adjusts Boeing 737 Max Order, Opts for More 737-8-200s

Allegiant Air, the Las Vegas-based budget airline, has made significant adjustments to its 2021 B737 MAX order with Boeing, signaling a preference for B737-8-200s over B737-7s. The revised deal, undisclosed in terms of the exact split, includes an additional 30 MAX options, expanding the total potential acquisition to 80 aircraft.

The airline clarified in an SEC filing that the amended agreements involve a new delivery schedule, with the first delivery under the revision expected in late 2023. The delivery timeline for the initial 50 aircraft is extended through late 2025. Allegiant Air expressed its intent to retire all twenty-one of its 177-seater A320-200s by the end of 2025 in alignment with the updated schedule.

Prior to the amendment, Boeing data indicated that Allegiant Air had committed to purchasing thirty B737-7s and twenty B737-8-200s. Allegiant Air is among the select group of customers for the smaller, yet-to-be-certified B737-7 variant, alongside Southwest Airlines, SkyUp Airlines, Luxair, and Ruili Airlines.

In a strategic move, Allegiant Air secured loan financing totaling up to USD 412.1 million from BNP Paribas and Jackson Square Aviation. The funds are earmarked for acquiring the first four B737-8-200s, scheduled for delivery between December 2023 and June 2024, as well as refinancing seven A320-200s. The first tranche of USD 196 million was drawn down on September 29, 2023.

Allegiant Air’s current fleet includes thirty-five A319-100s and ninety-four A320-200s, with plans to retire A320-200s as it integrates the new B737 MAX aircraft. The airline maintains its long-term strategy of acquiring second-hand Airbus aircraft even as it embraces the addition of new B737 MAX planes.